Legal Case Summary

Case Details
Case ID 037eba94-6fb8-4f6d-8e69-04db5b0c44b3
Body View case body.
Case Number H.C.A. No.84 of 2010
Decision Date Oct 13, 2013
Hearing Date Sep 28, 2011
Decision The appeal was allowed, and the suit was restored to the file. The Single Judge's dismissal was found to be misguided as the matter regarding the pagree system was yet to be proved through evidence. The court emphasized that under Section 65 of the Contract Act, 1872, the respondents were obliged to compensate the appellant for benefits derived from the void agreement concerning the pagree arrangement. The court found that the issue of the pagree system's existence in the market warranted further examination and evidence presentation.
Summary This case revolves around the legal principles governing the pagree system in commercial tenancies, particularly under the Contract Act, 1872. The appellant, Khan Muhammad, sought recovery of a pagree amount after being evicted from a shop owned by the respondents. The High Court initially dismissed the suit citing it was not maintainable under the Rent Laws. However, the appeal highlighted the obligation under Section 65 of the Contract Act, which mandates compensation for benefits derived under void agreements. The court underscored the need for evidence regarding the existence of the pagree system in the relevant market, ultimately allowing the appeal and restoring the suit for further proceedings. This case illustrates the complexities of tenancy laws in Pakistan, particularly in the context of historical practices like pagree, and sets a precedent for similar future cases.
Court Sindh High Court
Entities Involved Not available
Judges GULZAR AHMED, SALMAN HAMID
Lawyers Kazi Abdul Hameed Siddiqui, M. Abdul Karim Siddiqui
Petitioners Khan Muhammad
Respondents Mst. Irshad Begum, Abdul Wakeel Khan, Abdul Khaleel Khan, Abdul Jameel Khan, Abdul Zahid Khan, Abdul Shahid Khan, Abdul Rasheed Khan
Citations 2012 SLD 452, 2012 CLC 324
Other Citations Pakistan v. American President Lines Ltd. and others PLD 1962 (W.P.) Kar. 87, Eastern Federal Union Insurance Company Ltd. v. Bawany Industries Ltd., Karachi 1979 CLC 321, Hyderabad Municipal Committee v. Jaweed Murtaza Khan 1986 MLD 1410, Abdul Razzak & Company v. Assistant Collector of Customs (Appraisement), Karachi and another PLD 1993 Kar. 227, Mustafa Kamal and others v. Daud Khan and others 2009 SCMR 221, Afaq Ahmed v. Government of Punjab and another PLD 1992 FSC 286, Shehnaz Begum v. Ikhlas Ahmed 1990 CLC 904, Muhammad Sharif v. Iftikhar Hussain Khan 1996 MLD 1505
Laws Involved Contract Act, 1872, Law Reforms Ordinance, 1972
Sections 65, 3